The PIF calls this programme “Electric 360”, reflecting that it covers all three electric series.
No values have been published for the deal, but sources say it is multi-year, multi-millions of dollars. As well as prominent PIF branding, there will also be activations at all rounds hosted by the three championships.
The activations are largely focused on education, aimed at Saudis in their own country as well as the race going public in countries each series visits. There will be a programme of thought leadership events around sustainable mobility, STEM initiatives globally and community apprenticeship programmes.
Speaking exclusively to Autosport.com and Motorsport.com, Agag said that, although Formula E has been racing in Saudi Arabia since 2018, the idea for the Electric 360 sponsorship deal was just six months in the making.
“It’s huge for us,” said Agag. “It gives a lot of stability and support, especially to the two smaller projects, you know, because Formula E already is very strong. But for Extreme E and E1 to have a big partner like this supporting makes them a lot more viable, a lot more secure for the future. it's very difficult to set up championships and to make them last. And we have done it not only with one, but now with three. And this kind of partnership “360” I hope is not the last one that we do of this kind. For partners, this is a really great idea to support electric motorsport across the whole spectrum.
Saudi Arabia has made significant moves in sport in the last five years, part of the Vision 2030 project to diversify away from reliance on oil, which accounts for 40% of the country’s GDP. It is the second largest oil producer after the USA.
They have brought rounds of most major international motorsport series to Saudi as well as world title boxing fights and transferred elite footballers to Saudi teams. They have also invested in sports outside Saudi, particularly golf with the LIV project and Newcastle United in the Premier League. Agag believes that their motives for this aggressive move into sport are not fully understood by critics outside the Kingdom, who believe that the motive is to improve the country’s international image.
“I think their ambition in sport, I would define it with two words,” said Agag. “It's very ambitious, but also very rational. So following a rational scheme of growth, they want to be in different sports. They want sports also that give something to Saudi. The Crown Prince said it in an interview on Fox a few months ago that already sports have added 1% to the GDP of Saudi, and they think it's going add another 1.5% of GDP.
“I think people are wrong when they say they do all these sports investments to improve their image or whatever. They want to bring the best show for their own people at home. They want to bring the fights to Saudi, the motor races, they want to bring football to Saudi to give the best entertainment and sport to their own public so they can go and watch it right there at their home. I think it's a great way to bring progress to a country that is experimenting with a great change.”
Saudi GDP is currently $1 trillion, so for sport to contribute 2.5% of that figure would represent $25 billion; roughly the same percentage of GDP as sport contributes in France and the wider European Union. Another key driver behind the sport investments is that the country has a population of 36 million, of whom 63% are under 30 years of age.
Mohamed Al Sayyad, PIF Head of Corporate Brand, said: “At PIF, we believe in the power of partnerships, investing in innovative collaborations as part of our focus on ‘Investing in Better.’ These partnerships will enhance the quality of life for people, provide opportunities for the communities we serve, and help continue our work as a catalyst for transformation.
“Together with these championship series, Electric 360 will redefine electric sport and supercharge its growth, delivering tangible impact aligned with our broader business strategy as PIF drives new green technological innovation that will be the cornerstone of future electric mobility.”
